JetBlue Profit Tops View, Sees Capacity Growth; Amends Deal With Airbus

(RTTNews) - JetBlue Airways Corp. (JBLU) reported Tuesday that its second-quarter net income climbed 18.5 percent to $180 million or $0.53 per share from last year's $152 million or $0.44 per share.

On average, 12 analysts polled by Thomson Reuters expected earnings of $0.49 per share for the quarter. Analysts' estimates typically exclude special items.

Second-quarter operating revenues were $1.64 billion, 2 percent higher than $1.61 billion last year. Analysts were looking for revenues of $1.65 billion for the quarter.

Revenue passenger miles for the second quarter increased 10.3% to 11.6 billion on a capacity increase of 11.1%, resulting in a second quarter load factor of 85.0%, a 0.6 point decrease year over year.

Looking ahead, for the third quarter of 2016, the company expects capacity to increase between 5.5% and 7.5%. For the full year 2016, JetBlue continues to expect capacity to increase between 8.0% and 9.5%.

Separately, JetBlue announced that it is amending purchase agreement with Airbus to bring 30 additional A321 aircraft into its fleet over seven years.

Specifically, Airbus is scheduled to deliver 15 incremental A321ceos starting in 2017. Further, JetBlue expects to also take delivery of 15 incremental A321neos starting in 2020. Starting in 2019, JetBlue would have the option to take all of its A321neo deliveries with the Long Range configuration, the A321-LR.

The additional aircraft will allow JetBlue to capture an opportunity to position itself as the carrier of choice in transcontinental markets with a targeted approach that leverages its east coast strength.

Since launching in 2014, Mint has boosted JetBlue's transcontinental franchise and become a driver for long-term shareholder value.